Explain the Marginal Rate of Technical substitution
Explain the Marginal Rate of Technical substitution.
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MRTS it is stands for Marginal Rate of Technical substitution, is the rate at that marginal unit of an input can be substituted for the marginal units of another input therefore the level of output remains similar. Conversely, this is the ratio of marginal unit of labour substituted for the marginal units of capital without influencing the total output. Such ratio shows the slop of Isoquants.
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